Brentwood WA Property Investment

---

## 2. Market Overview - Median house price: $1,510,555 - Median unit price: $882,341 - 1‑yr price growth: +32.3% (very strong recent upside) - 5‑yr CAGR: +4.5% per year (steady longer‑term growth) - 3‑yr forecasted growth: +13.5% (expected continuation) - Days on market: *Data not provided*

Signal: The combination of a 32.3% price jump in the last 12 months and a solid 5‑yr CAGR means sellers can command premium prices, while buyers face a competitive market. With no days‑on‑market figure, we cannot gauge how quickly listings are selling, but the price dynamics suggest a seller‑favourable environment.

---

## 3. Rental Market - Median weekly rent: $795 - Gross rental yield: 2.7% - Vacancy rate: *Data not provided* - Demand rating: *Data not provided*

Implication: A 2.7% gross yield is modest; investors should expect limited cash‑flow upside unless rent can be pushed higher or purchase price can be secured below median. Without vacancy data we cannot quantify rental risk, but the low yield suggests the market is currently more capital‑gain focused than income‑focused.

---

## 4. Short‑Term Rental Opportunity - STR nightly rate: *Data not provided* - STR occupancy: *Data not provided* - Estimated annual STR revenue: *Data not provided*

Conclusion: With no STR metrics available, we cannot model short‑term rental performance. Given the modest long‑term yield (2.7%), investors should treat long‑term rental (LTR) as the default strategy until STR data emerges.

---

## 5. Infrastructure & Growth Drivers - Known projects / transport / employment base: *Data not provided*

Assessment: Without explicit infrastructure or employment information, we cannot attribute demand to specific drivers. The strong recent price growth (32.3% YoY) suggests underlying demand, but the source of that demand remains unquantified.

---

## 6. Bull Case If the 3‑yr forecasted growth of 13.5% materialises and price momentum continues:

• House price upside: $1,510,555 × 1.135 ≈ $1,715,000 (≈ +13.5% over three years)
• Unit price upside: $882,341 × 1.135 ≈ $1,001,000 (≈ +13.5%)

Assuming rent can be lifted to match market‑rate growth (e.g., $795 × 1.135 ≈ $902 per week), the gross yield would rise to roughly 3.2% on the median house price, improving cash‑flow prospects.

---

## 7. Risks | Risk | Quantified Concern | |------|--------------------| | High entry price | Median house price $1,510,555 may limit cash‑flow and increase financing costs. | | Low yield | Gross yield 2.7% is below the typical investor target of 4‑5%. | | Vacancy uncertainty | Vacancy rate not supplied – could be higher than expected, eroding cash‑flow. | | Employer/industry concentration | No employment data – a single‑employer suburb could amplify downside if that employer contracts. | | Supply pipeline | No data on upcoming dwellings – a surge in new units could pressure rents and yields. | | Interest‑rate sensitivity | High purchase price amplifies the impact of any rate rise on debt service. |

---

## 8. The Play - Entry price range: $882,341 – $1,510,555 (median unit to median house). - Minimum yield target: ≥ 2.7% (the current gross yield) – aim for purchases that can deliver at least this level, preferably higher if you can negotiate below median. - Watch signals: * Release of days‑on‑market data – a drop would confirm strong buyer demand. * Vacancy rate updates – rising vacancy would flag income risk. * Any announced infrastructure or employment projects – could underpin further price growth. - Recommended strategy: Acquire a property at or below the median unit price where possible, hold for capital appreciation, and monitor rental market data to decide whether to switch to LTR or explore STR once metrics become available. The strong 1‑yr growth (32.3%) and positive 3‑yr forecast (13.5%) support a buy‑and‑hold approach, provided the purchase price yields at least the current 2.7% gross return.